This invention relates to personal checks which can inhibit fraud by someone who tries to negotiate such a check without authority from the holder of the account upon which the check is drawn. The invention also pertains to a related method of discouraging personal check fraud.
Personal checks are not new and have long been used in the banking industry as a means of transferring funds from one person or account to another person or account. As society has become more mobile, and more populated, some unlawful people now prey upon the trustful nature of some merchants by cashing stolen or otherwise worthless personal checks. Usually, the worthless checks are passed during rush hours and the dishonest person tries to take advantage of the honest merchants' inability to remember the physical characteristics of the person cashing the check. After several days have passed, and a bad check is returned from the bank, it may be difficult for the merchant to remember or accurately describe or identify the unlawful check writer.
One method of trying to prevent such fraud has included requiring photographic identification when the check is cashed or otherwise negotiated. Usually the photographs are incorporated with a driver's license, a credit card, or a passport. With this type of pictorial identification, however, the photograph bearing the identity of the person cashing the check is returned to the person that has been identified. This leaves the merchant with no tangible evidence to help recall the physical characteristics of the person that has been pictorially identified.
It has been proposed that identifying photographs be attached to personal checks for the identification of the check writer. This method, however, poses the risk of check and photograph becoming separated. Once the check and the photograph are separated, then the advantages of the combined check and photograph are lost. Also, multilayered checks (check+an attached photograph) may damage or jam the automated check processing machines that are now used by many banks. Printing a photograph of the account holder on each of the checks to be cashed was mentioned in U.S. Pat. No. 3,671,059 to Zeller (column 1, lines 17-25), but dismissed as too costly, impractical, and undesirable.
Comparing the signature of the check writer with a signature displayed on a separate document is another technique that has been used to try to prevent fraudulent use of personal checks. For many years, merchants have compared the check writer's signature on the check being cashed with the check writer's signature displayed on a driver's license, credit card, or some other identifying document. The identifying document may also include a photograph along with a signature of the check writer. After the identification process is completed, however, the identifying documents are returned to the check casher. This procedure, therefore, also fails to leave tangible memory aids with the merchant to assist him or her in recalling the physical characteristics of the check writer.
The comparative signature technique is also used to identify the proper owner of a traveler's check. When using this procedure, a traveler will prepay and purchase one or more traveler's checks. The traveler will then sign his or her signature on the face of the newly issued checks. Later, when the traveler is ready to cash a check, the check owner will again sign his or her name in order to provide comparative signatures that will help verify the check casher's proof of ownership. This procedure discourages fraudulent use of traveler's checks. Unfortunately, the traveler's check technique lacks convenience and flexibility. The traveler must first anticipate the need to acquire the traveler's checks. Next, the traveler must pre-purchase the traveler's checks. Also, the checks are issued in fixed denominations, and do not lend themselves well to many personal uses. Also, the traveler's checks do not leave a paper trail that is returned to the traveler. The paper trail is desirable because it can be used to help document personal, company, or tax deductible expenses.
Physical descriptions, such as height, weight, complexion, and the color of eyes, are often included on drivers licenses, passports and other non-transferable documents. These descriptions help identify the proper owner of the document.
Although the foregoing procedures are beneficial, they have shortcomings as mentioned above with regard to their use in conjunction with the use of personal checks. These procedures also typically require one to not only find and fill out the check, but also locate, display and return the identification material to a purse or wallet, which can be cumbersome and time consuming, especially at a busy checkout counter.
Although each of the foregoing can be useful, there is still the need for an improved personal check and method for discouraging fraudulent use of personal checks.